CIBIL is a credit rating agency which analyzes the past and present financial records of individuals to assign them with a three-digit score which plays a very important role in getting a person approved for a loan, especially a personal loan. The score assigned by CIBIL is often referred to as CIBIL score due to the presence of multiple credit rating agencies or they are referred to as credit score.
People who have plans to avail a personal loan or any other unsecured loan, even some secured loan for that matter; they must ensure a score of 750 and above in order to ensure high chances of approval. That said, alongside maintaining a good credit score, one must also maintain a good credit history.
Now, whoever wants to apply for a loan for the very first time can make an inquiry on CIBIL's website and find their credit report. The credit report contains various details like:
The total amount of credit you availed
Types of credits availed – loans or credit cards
Number of days a payment is late
Settled or written off credits
Talking about the interesting facts;
Credit companies avail information from lenders and the score is decided based on that.
It is a crucial eligibility criterion for availing loans, as explained above already.
You may receive a loan with a low credit score but get saddled with a high-interest rate in return.
Credit companies i.e the lenders never make changes to your credit report, it is done by CIBIL based on the data they receive.